Return of Investment

Considering Return of Investment (ROI) is an important aspect that you must consider if you are to implement RFID for your business. Some of the aspects that must be thoroughly evaluated are fixed cost, recurring cost, cost of labour for switching to a new system.

It is best to consider creating an application and cost feasibility before fully committing to an RFID system.

·       Application Feasibility – refers to the process of understanding if your processes are suitable for RFID use. You need to consider that like any technology, RFID also has limitations. In other words, there may be issues that affect how your RFID system will run for your business. Application feasibility will help you know which parts of the business will benefit and which may not be so receptive.

·       Cost Feasibility – This refers to evaluating if applying an RFID for your business is achievable from a financial perspective. Furthermore, it also includes working with current and prospective numbers to help you know the estimated timeline for an ROI. Keep in mind that while RFID for your business has numerous benefits, it can be expensive. Usually, it requires a substantial initial investment for testing.

Fixed vs Recurring Costs of Using RFID for Your Business

Implementing an RFID for your business will also come with fixed and recurring costs. Understanding these costs will also help paint an accurate picture of how much the entire investment will be.

·       Fixed Costs – These are one-time costs that are typically related to starting the implementation of a system. For example, in using an RFID for your business, you may need to invest in buying hardware such as readers. Nevertheless, you can still save a lot in the long run when you choose the right hardware. Consider reading about how the Total Cost of Ownership works.

·       Recurring Costs – attributed to items that are used once and then discarded or consumed during the application. For example, an RFID inlay (label) is a recurring cost within an RFID system. While these are usually low-cost to produce, they are frequently no longer reused once an item that it is attached to is no longer in use. Moreover, if your business is using an RFID printer, the printer ribbon will also be considered a recurring cost.

Environmental Factors of Using RFID for your Business

RFID systems can be susceptible to a range of environmental factors and certain materials. These can easily reduce read ranges, as well as, affect overall system accuracy. Liquid and metals are the most common sources of interference for RFID systems. However, they can be eased with the proper RFID tags, planning, and equipment.

Is RFID for Your Business?

In whatever business operations you are in, RFID is a helpful solution to implement. When finding the right readers there are some factors that should be taken into consideration. For example, you need to take a look at the environment. If you need to use your reader in areas with extreme temperatures, sand, water, dirt, or an intensive laundering process – make sure to use a device that can withstand these situations. Suitable solutions for this requirement are rugged devices with RFID and smart label readers